Desk note · industry · Aviation / fuel
Carriers told BusinessLine on 9 October 2026 that oil marketing companies are withholding value-added tax relief linked to June’s discounted aviation fuel sales. Airlines want the Centre to release the funds as surcharges on new tickets rise again.
On 9 October 2026, airline sources told BusinessLine they want funds released from value-added tax relief on aviation turbine fuel. They say oil marketing companies are withholding those amounts to recover losses from selling jet fuel at reduced prices in June 2026, when domestic under-recoveries were running near ₹30 per litre. Carriers argue they were not told at the time that refunds would later be clawed back. Delhi and Maharashtra had cut jet fuel VAT to 7% for six months from June, and the Union Cabinet had cleared up to ₹10,000 crore of support for a price stabilisation fund, though reporting later said the fund lapsed when no airline signed the required agreements.
Ticket prices are built from fuel, airport charges, crew, and financing. When fuel dips briefly and taxes ease, airlines can hold fares steady. If refunds never arrive, the bill shows up later as higher surcharges or trimmed routes. That is what passengers are seeing now: IndiGo, Air India, Air India Express, and Akasa lifted fuel charges on new bookings in the first week of October as global jet fuel prices climbed again. Airlines say passing June’s shortfall to today’s travellers would be unfair, but weak balance sheets may leave little choice without a government-brokered settlement.
If you are booking festive travel, compare total fare including fuel surcharge, not just the base ticket. A dispute between carriers and oil firms does not guarantee refunds to you, but it explains why surcharges moved in October. Watch whether Civil Aviation Ministry talks restart the stabilisation fund with new terms, and whether OMCs confirm how VAT adjustments will be settled. Route cuts would show up as fewer seats on thinner city pairs before they show up in stock prices.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.